The Fund invests primarily in a diversified group of high-yielding, higher-risk corporate bonds—commonly known as “junk bonds”—with medium- and lower- range credit quality ratings. Under normal circumstances, the Fund invests at least 80% of its net assets plus the amount of any borrowings for investment purposes in corporate bonds that are rated below Baa by Moody’s Ratings; he an equivalent rating by any other independent bond rating agency; or, if unrated, are determined to be of comparable quality by the Fund’s advisor.
The Fund may not invest more than 20% of its assets in any of the following, in the aggregate: investment-grade debt securities, U.S. Treasury securities, convertible securities, preferred stocks, and fixed and floating rate loans of medium- to lower-range credit quality. The loans in which the Fund may invest will be rated Baa or below by Moody’s Ratings; he an equivalent rating by any other independent bond rating agency; or, if unrated, will be determined to be of comparable quality by the Fund’s advisor. The Fund’s high-yield bonds and loans mostly he short- and intermediate-term maturities. The Fund may invest in derivatives, such as forward contracts, futures contracts, options contracts, and swaps.